Skip to main content
4:00 pm
let's bring it across the goalline. just like i know you think notre dame will. you're a hater of notre dame. let's talk about it. couple weeks ago you said sell everything, get out. you still feel that way? >> i felt strongly about it after the rally on thursday as well. today is nothing more than a retracement. i'm not buying this dip yet. i need a further dip before i really put my money to work. we're not getting it yet. >> and if you do put your money to work, where do you think the values are? >> anything -- you know, i really don't know. i don't know if there's a sector a will really outperform. if we're going to rely on alcoa tomorrow, i'm not sure that's getting us going. >> there you go. maria carries on with the "closing bell."
4:01 pm
and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo. market closes lower after the s&p 500 closes at a five-year high on friday. bit of a downer today. take a look at how we're finishing on wall street. dow down about 51 points. absence of buyers not necessarily selling going on today. s&p 500 gave up about 4 points. also off the worst levels of the afternoon. and the nasdaq composite down about three points. really flat on the day for the s&p and the nasdaq. the bulls took a back seat today with the s&p retreating from the five-year high. so was it a slip blip in the rally? we bring in now jeff acorzanik,
4:02 pm
ron asana. good to see you. peter, let me kick this off with you. what did you see today in terms of flow? >> in flow? >> yeah. where'd the money move? >> the money moved trying to find little spots and little dips. but there wasn't much money going into the market or out of the market. it was almost anticlimactic after last week. >> jeff, what do you think about this market here going into the rest of the year going into earning season? how do you want to be positioned? >> we're still overweight equities in here. it's a time for caution. we don't expect much out of earning season. and then we're going to go right into the debt ceiling debate. >> when you say you don't expect much from earning season, what do you mean? do you think we'll see a flat showing? where's the strength and weakness? >> well, we think to some degree it's not going to be as relevant because the market is really looking forward here. we're looking out to the end of the year when we have housing,
4:03 pm
globally coordinated recovery. so this earning season to some degree is old news. we think the markets are going to be much more focused on the debt ceiling debate short-term and the good news we see down the road long-term. >> jack, you know, we all just went through that whole debate over the fiscal cliff. and now we're gearing up for another fight in washington. that over the debt ceiling. how rankerous will it be? >> it's remarkable how low volatility is right now. to me it would seem investors are complacent as if we just haven't done this just the other day. yeah. i see more and more problems. i see more volatility. more uncertainty. and, you know, this is one where 2013 is ultimately a year of austerity. one where it's a rebuilding year. which means we probably want to play a lot of our equity exposure away from the u.s. to some degree. or at least away from the
4:04 pm
consumer. and then if we do get a huge pullback, i mean, if the market really chokes, perhaps there will be a buying opportunity. ultimately i think we end the year maybe mid-single digits to the upside on the s&p. >> ron where are you on this? >> i probably split the difference between jeff and jack on this. i think we'll be choppy around earnings. i think wall street is inert to it. we rallied the cliff and are probably going to expect last minute deals. it's not as difficult as it was to tolerate this a couple years ago. and i also think we're going to get something of a synchronized global recovery with every bank expanding money supply. so i think the u.s. and china might be the two barbells for this year that do the best out of all the major markets. >> maybe, but ron we're seeing slowdown. you've got the uncertainty
4:05 pm
continuing in the u.s. >> i don't see any uncertainty in the u.s. i think all the nonsense in washington is just that. i don't think it's going to turn out any different than anyone expects. housing is a tail wind rather than a head wind. i think in china they're making a commitment now after the slowdown which was bad. rallying toward the end of last year. they're going to stimulate in fiscal and monetary terms. i'm less uncertain about china than in the last three year. >> let me add on ron's point. not only is china well positioned given that they've underperformed the last couple years, they're actually trading now about 20% to 25% cheap to the u.s. i think not only is china a great place, probably a safer bet than being in parts of the u.s. market and parts of europe. >> although i think it's a trade rather than an investment. >> i would hold the water on that. >> i think that we learned last
4:06 pm
week the dangers of being out of the u.s. market to some degree. we're with you. we're overweight emerging markets in here. and we see it. but i don't think we should underestimate the opportunities in the u.s. market at least by year end. >> maybe. but when you look at what's going on in washington, i mean, sure. you can call the back and forth nonsense and i agree with you. but the fact is something gets cut. so money stops going into certain areas. we are going to see only cuts as sort of an agreement around this debt ceiling. so does that impact certain sectors and earnings? >> maybe. but we're a wash in liquidity again. we're in that type of market. >> yes. >> i think the economy is going to end up being far stronger than people realize. that will take over and overtake the fiscal austerity. however we get there, i don't think we're going to do europe in terms of austerity. we're not doing greece. these guys are not ready to do that type of deal. i doubt the president will get a
4:07 pm
trillion dollars in tax increases and in spending cuts. >> we'll leave it there guys. final word, jack. go ahead. >> how we get there doesn't matter much. over the weekend they're going after the energy industry. whether they can get that done or not. that's to be determined. but there's some real sector implications as to how we see this austerity measures coming together. >> good point. thanks, gentlemen. we appreciate it. we'll be watching the markets ahead of earnings for sure. more than 250 retail executives rub elbows at the womens summit in new york. amazon shares hitting a record high. but a traditional retailer stock not doing so well today. courtney reagan has more on this story. over to you. >> thanks. retail in focus both in the markets today and here with the womens wear daily ceo summit. today the s&p index outperforms
4:08 pm
the bench mark. but shares of jcpenney falling more than 4% as ron johnson spoke here to a packed room. though it was close to media, we know the insiders were tweeting he spoke about lessons learned. both from the transition he's going through from retailer as well as former boss steve jobs. we don't now how the holiday turned out for jcpenney. one person we spoke to is very happy with how his merchandise performed at jcpenney. >> we had a stellar performance in izod at jcpenney during the holiday season. great sell throughs. we beat our plans particularly for the month of december. so we really feel very good about how that has all come together, how izod has performed at jcpenney. we love the way they look, the way the brand is presented. and the margins have been outstanding. >> no shares of online only
4:09 pm
amazon hitting record highs. in tandem today with the heavy conference connecting with the consumer on multiple screens and platforms. a number expected to release their holiday sales numbers this week. many of which invested heavily in their online department. retail investment bank president collin welch told me today he thinks many of these retailers are better off acquiring technology companies and companies that already have this expertise than building them from the ground up. >> thanks very much. earning season kicks off tomorrow. will a good earning season trump a congress move from one fiscal crisis to another? after the break, why the market may hinge on what those companies report. we'll navigate it for you. then would you pay $1.6 million for a car? at least 15 americans have already bought a car at that price and it's not even legal to drive in this country yet.
4:10 pm
but first flu cases rising rapidly. your chances of getting the flu this season could be as high as 20%. coming up we're going to check it out. we've got the latest numbers and we'll talk with the ceo of one of the companies that makes the vaccine. back in a moment. i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-345-2550 it's packed with tools that help me work my strategies, tdd#: 1-800-345-2550 spot patterns and find opportunities more easily. tdd#: 1-800-345-2550 then, when i'm ready... act decisively. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 with the exact same tools, the exact same way. tdd#: 1-800-345-2550 and the reality is, with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 ...until i choose to focus on something else.
4:11 pm
tdd#: 1-800-345-2550 all this with no trade minimums. and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-877-656-8748 tdd#: 1-800-345-2550 and a trading specialist tdd#: 1-800-345-2550 will help you get started today.
4:12 pm
4:13 pm
welcome back. make or break time for corporate america as earning season is kicking into gear tomorrow. let's get to bertha qume. she's got the highlights. >> alcoa is the top of the highlights to watch this week. low aluminum prices expected to way on alcoa's results. after three consecutive quarters of beats ending in october. shares up in the last quarter. not great for the full year. wall street is looking for earnings of six cents a share. but also on tuesday, ahead of the bell we're going to hear from monsanto. it will be reporting results. looking for earnings of 37 cents a share. that's up 60% from a year ago from the chemical giant. on revenues of about $2.6 billion, an 8% increase. on wednesday consolation brands pops the cork ahead of the bell.
4:14 pm
up 10% from a year ago. on $726 million in revenues. and wells fargo will kick off on friday. analysts looking for 89 cents a share. on just over $2.1 billion in revenues. but wells fargo is among the ten banks with the robosigning. they'll take a charge in nar fourth quarter. wells fargo declining to comment because they are in the quiet period. we'll have to wait until friday to hear how it will impact them. >> thanks so much. so what should we expect out of earnings this season? how much of the market hinges on earnings considering there is already a worry about the debt ceiling to come. chris constantinos is with me. thanks for joining us. rich, i want to get to you in a moment. nick let me kick this off to
4:15 pm
you. we saw more companies cutting guidance than raising outlooks. you're expecting that trend to continue. >> yeah. for the last six recorded quarters, we've seen a majority of the companies beat earnings expectations and then only to subsequently then cut their outlooks after reporting. the fourth quart e of 2012 earning seasons here is going to be the seventh quarter where that happens again. what we're seeing is the rate by which they're cutting their forward outlooks has become less severe than 2012. >> so, rich, i was really struck by looking at your report and learning you cut your expectations for growth quite substantially for the fourth quarter. what happened? and what's going to be the catalyst for actual earnings growth this quarter? >> back in october expectations for the fourth quarter by s&p capital iq was for a 9% growth in earnings. currently the numbers are 3.29%
4:16 pm
growth in the fourth quarter. however, if that actual number is realized would represent the second best quarterly growth for 2012 coming off the low point in the second quarter when s&p earnings grew less than 1%. we've been coming off the bot fom back in the june ending quarter on an upswing. hopefully that'll grow into 2013. >> what about revenue growth rich? >> sure. we're looking at the new normal. in the 2011 we had several quarters of double digit percentage earnings or revenue growth. this in 2012 several quarters of single digit growth looking only from about 3% growth for revenue again on top line. but again, looking at companies endeavor to work with the new normal in terms of the tax code, looking to the fiscal situation. and i think what's critical is the sectors. we're looking at discretionary financials leading the way.
4:17 pm
to help earnings in the fourth quarter of 2012. >> chris, what do you think? i know you were optimistic about the global economy. you think that will bode well for the global multinationals out there. >> i think so. we've been living under a shroud with all the political things happening in the u.s. and over time as that clears up for better or worse, i think company ceos are going to let loose on the pursestrings more than in the past. i think there have been positive things happening in the u.s. you look at pmis and other indicators. i think underneath the hood underneath all the political uncertainty we've got a pretty solid economy across the world. >> so tell me what sectors or company you think are best positioned in that regard. chris. >> sure. one of the things we've been warming up to is the call on cyclicals over defensive. over the past few years i've been on this show, we've talked
4:18 pm
a lot about dividend growth. i think that's an important trend as interest rates stay low. we've warmed up to the idea of moving more cyclicality into your portfolio. has gotten from a historical basis pretty wide. a couple multiple points too. that gap tends to close which i think will be good for cyclical stocks. we're talking about industrials materials even some energy and certainly technology stocks here. >> rich, same question for you and i know for a long time i was betting the financials would show this great growth in the fourth quarter. do you still expect that from the financials or have things changed a bit? >> in regard to my colleague just mentioned his sectors. we're looking for industrials, information technology, and health. i think in terms of where are you going to find value or some growth is again in the financials and discretionary. as you see the economy expand as evidenced by last week's job
4:19 pm
numbers, you can see some incomes rise. translated into better earnings for those sectors. >> nick, what about you? what sectors do you want to be exposed to in terms of this market ahead of this earning season? >> what we have to distinguish between is where the best earning growth is going to be versus where the best stock investments. certainly technology is going to liven some other areas. i would agree with chris in that we're going to see global pmis pick back up. materials, energy industrials typically lead in the growth play. the market was up 16% last year. those were the sectors that outperform. we think you want to shift away from utilities into the cyclical names as well. we're seeing the economic data improve marginally. we're seeing those areas you want to go. i think the big thing for earnings in general, you talk about the fiscal cliff, the debt ceiling. in the fall of 2011 when mario
4:20 pm
draghi instituted the operation, that's the point we see markets really start to rally. by doing that he took the chance of a banking collapse off the table. that's why earnings have not fallen off a cliff. the rates of the estimate cuts have been getting less severe. majority of companies are guiding but a lesser rate. that's a positive delta. that's bullish for the market. >> got to love mario and ben, i think. thank you very much. we'll see you soon, guys. appreciate that. looking for an investment option that won't hit you with a tax sticker shock? coming up our bonds expert tells us why muni bonds -- get the notebook out because he'll explain. then life in the fast lane. some ponying up 1.6 million bucks to own a new car that habit even passed u.s. safety tests yet. our wealth editor robert frank takes one for a careful spin. stay with us.
4:21 pm
♪ ♪ [ male announcer ] some day, your life will flash before your eyes. ♪ make it worth watching. ♪ the new 2013 lexus ls. an entirely new pursuit. [ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. with investment information, risks, fees and expenses are you flo? yes. is this the thing you gave my husband?
4:22 pm
well, yeah, yes. the "name your price" tool. you tell us the price you want to pay, and we give you a range of options to choose from. careful, though -- that kind of power can go to your head. that explains a lot. yo, buddy! i got this. gimme one, gimme one, gimme one! the power of the "name your price" tool. only from progressive. and having an investment expert like northern trust by your side makes all the difference. we add precision to your portfolio construction by directly matching your assets and your risk preferences against your own unique life goals. we call it goals driven investing. after all, you don't climb a mountain just to sit at the top. you look around for other mountains to climb. ♪ expertise matters. find it at northern trust.
4:23 pm
welcome back. it was a shot across the muni bound when meredith whitney forecast a wave of bankruptcies and defaults in the muni market. thus far those predictions have not come to fruition and my next guest doesn't think they will. joining me now is peter hayes, the firm's head of municipal bond investments. good to see you. thanks for joining us. >> great to be here. >> even though we haven't seen what meredith had predicted,
4:24 pm
there seems to be a lot of concern about the fiscal help at the state and muni level. most notably after she made that wave of the bankruptcies was the call right? should we still be concerned? >> here we are two-plus years later and we still haven't seen the wave of bankruptcies. i think it's important to look back and think about what that meant and what happened. and partially it was the fact that these local municipalities were stuck with high fixed costs that were embedded from a housing market they thought was going to go up forever. well, it didn't. their revenues are closely tied to valuations. valuations went down so their revenues were going down. i think many municipalities were feeling the stress. but importantly we saw a great deal of intervention on the part of states to avoid bankruptcy. why? because access to capital and low borrowing costs are important to the issues.
4:25 pm
now we're seeing the worst is behind us. housing prices have stabilized. in some cases they have gone up. state revenues have increased ten consecutive quarters. we think the worst is behind us in terms of the municipal credit or the threat of municipal bankruptcies. we have a better credit story ahead. >> so what do you think? tell us about the fiscal cliff deal. does that actually improve the attractiveness of muni debt for investors? >> there's a couple ways to look at it. one is on the fiscal cliff, the spending side. the sequestration cuts as they were written could have an impact on certain areas. not really sweeping the entire market necessarily. but certain sectors. take for instance defense, the one that's largely talked about. that would impact certain states like maryland and virginia that relies so heavily on defense and defense employment. so there are certain areas it could have an impact on. it creates demand because the
4:26 pm
taxes are going up. that tax bite takes different forms. that's going to create a change for the asset going forward. >> where is the best place to put your money forward in this space? how do you do it? >> look at two things. one is let's think about the yield curve and interest rates. we've seen a bit of volatility on interest rates lately. there's a thought we might see an environment of better economic growth. rates might go higher. we think the immediate part of the curve is probably the safest place for the investors who are looking or think rates might be going up. then the other is you need to play the revenue space. there's a lot of high quality credits out there. but the yields are low. you're not really getting compensated. from a risk reward perspective, like health care and transportation, like housing and education offer a lot of value with not a lot of risk. >> so tell me how the fed plays into all of this, peter. there was all that noise last week about the division among fed members on how long the stimulus program should continue
4:27 pm
or will continue. if rates stay low and they don't fall any further, what's the impact of the growth in the muni bond market? how does that play into it? >> that's a great question. that's one we're talking about here as well. i think it's important to realize that the fed was only beginning to talk about having a debate or a discussion about removing that qe. so they've been anchoring on the long end of the market. which has kept rates from rising dramatically. i think that's the case for the foreseeable future. we don't see that removed any time soon. some of the excess in the economy, muni rates follow treasuries to some degree. we tend to be less volatile. muni rates rise to a lesser degree. we think given the fact rates have a bit of a ceiling on them and won't go much higher, we think muni still represents a good investment. you really have to go back and take a look at the impact of taxes. because that's the real reward here. buy for income. you talk about the rates going
4:28 pm
lower, that's going to be difficult unless we see some big shock to the system which would caught a flight to quality. that's not our call here. so focus on income and not the total return that the asset classes have enjoyed the last two years. >> great to have you on the program. thanks so much. >> thank you. up next, flu season hitting early and hitting hard. the centers for disease control saying more than a dozen children have already died from influenza this year in the united states. talk with the ceo of sanofi. then what are your money risks in 2013. also ahead, you know who's not worried? those who bought this $1.6 million car. it hasn't even passed u.s. safety tests yet. our wealth editor robert frank will check it out next up. with the spark miles card from capital one, thor gets great rewards for his small business! your boa! [ garth ] thor's small business earns double miles
4:29 pm
on every purchase, every day! ahh, the new fabrics. put it on my spark card. ow. [ garth ] why settle for less? the spiked heels are working. wait! [ garth ] great businesses deserve great rewards. [ male announcer ] the spark business card from capital one. choose unlimited rewards with double miles or 2% cash back on every purchase, every day! what's in your wallet? [ cheers and applause ] [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or turn 30-million artifacts... ♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it.
4:30 pm
4:31 pm
welcome back. the risk reward scenarios are being calculated. each year the group releases top risks for the year that will impact the markets and how your money is made and lost. to take us through is ian
4:32 pm
bremer. >> good to be back. >> thank you for joining us. there was a time you could not avoid talking about the bricks. everybody was looking at the bricks for growth. now you're looking at the bricks in a different way. is this one of the risks? >> i'm saying you can't even look at the bricks as a group anymore. brazil is becoming a developed state. and the downside risk is low. it's becoming more understandable. you look at a company like russia, you couldn't classify it as an emerging market. there's nothing about russia that is emerging. it's not improving in political reform, breathtaking corruption, brain drain, financial flight. aside from an energy sector, russia's submerging and india is slowing down and has no political will and no capacity to move on economic reform. so actually 2/3 of the world's growth now is out of the emerging markets.
4:33 pm
last four years thank god they were there. actually we'll see the developing world has more bounded downside. even if the worst comes in the united states, there's only so far we're going to sink. we're still growing. . in the emerging markets in a difficult economic market, they're great indeed. >> you're saying the emerging markets are the top risk that investors face in 2013. >> that's right. >> what's the next risk? >> the second is china's information. china is going to grow quite a bit in 2013, but the ability of the chinese government to respond to hundreds of millions in the middle class that are part of an information society and have information about things involving the chinese leadership, the chinese have no desire to share will not only limit them from being flexible but it will have a great deal of nationalism in china. against japan and the united states. that means that china rising which has been again for the
4:34 pm
last four years something we've been appreciative, increasing will be a challenge, a wild card, and a threat in some sectors. >> so many of our viewers or managers or business that are guests, they want to get a foothold in china, but it's not easy to do. they keep out foreigners. you're not really going to get a piece of that 1.3 billion person population. >> the idea of selling 2.6 billion sneakers in china has been historically a wonderful thing to think about. but the reality is any major economy in the world, china has more uncertainty and volatility in its development by a large factor. and yet we're all saying thank god for china. china's going to become the world's largest economy and it's still going to be a poor country. it's still going to be an authoritarian state. this is actually a dangerous thing and leads to much lower quality economic growth globally. we need to come to grips with that. the risk isn't in the united states. the real risk is that. >> interesting.
4:35 pm
i think the chinese are worried about a revolution of its people. speaking of revolutions, the protest in the mideast. they're another one of your risks. >> yes. not in arab spring. it's actually a long, hot arab summer where you have political sectarianism growing across the region. most importantly in syria where the war is not only 60,000 lives a day, but it's going across the borders into iraq, jordan, turkey. the one country, the one people that doesn't have a country coming out of historical colonialism is something we'll talk more about in 2013. >> you are mentioning risks outside the united states. but you also see risk in the u.s. >> we do. really about washington politics. that fiscal cliff deal should make us no mar happy or satisfied we'll have a bipartisan deal on the debt
4:36 pm
ceiling. >> dysfunction. >> extreme dysfunction. even if we power through that, all the structural trends in the u.s. are quite positive. housing and the energy revolution and business profits. as a consequence of all of that, there is a reality. the political risk is going to slow economic growth in the u.s. somewhat. but that downside is really bounded. it's really limited in a way that it's not in so many of the emerging markets around the world. >> another risk you bring up is the jibs. that's japan, israel, and britain. >> that's right. china is rising, the middle east is exploding, and europe is muddling through. each has one country that happens to be the special ally of the united states that is outside and can't do anything about it. china's rising and japan can't have a good relationship with them. they're really increasingly by themselves and facing conflict. the middle east is exploding.
4:37 pm
israel is on the downside of every one of those relations whether it's egypt or jordan or turkey. and the europeans are muddling through but ultimately are improving and tightening in the eurozone. where are the brits? they're outside. these are the three countries the united states has a special relationship with. they're our allies yet they're countries that are impacted very negatively by the unmooring happening today. >> with all these risks, where do i put my money? >> i think there are a few emerging markets becoming more developed. places like brazil and turkey. but also the strong developed markets are coming back. financial crisis, we've been worried about the eurozone and the united states. 2013 we can first say the fiscal crisis is behind us. actually those developed states turn out to be more stable. >> we'll leave it there. ian, nice hato have you on the
4:38 pm
program. up next, buying a car more than a million dollars that might not even be legal yet to drive. our wealth editor robert frank actually drove the car. $1.6 million? was it a fun ride? >> it was an expensive ride. there are some brand names known only to the super rich. pagani is one of them. their latest model is called the huayra. $1.6 million. it's been named the supercar of the year. while they're only making 40 a year, they've sold more than 100. even the key is a work of art. it's the mini car in aluminum. the first schedule for this is july. that is if and this is a big if. if the car is legal. now, right now it is not approved by the transportation department for u.s. roads.
4:39 pm
pagani says that's just a formality and it will get approval in march. but pagani's last model was never street legal in the u.s. pagani says it couldn't afford to do the needed crash tests on that last car. it has done the crash testing on this car and said the car performed well. that's a $1.6 million crash we're looking at. so who is buying the huayra? they won't say but jay leno drove the car i did and said it's unbelievable. you can see more pictures on cnbc.com. >> that's amazing and it's not even legal yet. >> when the wealthy want something, they want it. and i think these 18 american who is bought it are just hoping that the company's right when they're saying they'll get approval. but it's a big risk. >> robert, thank you. >> thank you. >> we'll be watching. shifting gears, the flu spreading across 41 states.
4:40 pm
experts warning one in five americans could come down with the flu this year. the head of sanofi is with me next on why fighting this strain has been an uphill battle. and later our pros will tell us what to expect when kicking off earning season. can't afford to miss that one. stay with us.
4:41 pm
4:42 pm
[ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪
4:43 pm
welcome back. well, the flu is spreading fast and furious this winter. and the worst part of it is it started earlier than normal this year. what are people doing to combat the through? sanofi seems to be on the front lines of fights this virus. the ceo is with me to talk about what's in the pipeline of his company. he's at the annual jpmorgan health care conference in san francisco. good to see you, sir. thanks so much for joining us. >> nice to be with you, maria. >> before we get to what's going on at sanofi, i want to ask you about this flu and what you're seeing. get your take on the concern of the spread of the flu this season. your vaccine division manufacturers flu zone and that was an fda approved vaccine this season. what's the demand like? what can you tell us about your take on the flu spreading? >> well, we actually start selling the flu shots already
4:44 pm
towards the beginning of september. we've sold about 60 million doses already this season. that's about half of the market. so it's been a robust market. the cdv has recommended pretty much most people get a vaccine. we've also developed a particular form. we have a form for seniors, a high dose flu with a pediatric version of flu zone. i personally got vaccinated with flu id which is an interder mall. which doesn't have the long needle associated with it. it's o probably the best investment one can make in global health. >> do you have any idea why it's such a threat this year versus past seasons? it happened earlier? we've got fatalities as a result of this particular strain. >> well, you know, the reality is in the united states there's about 30,000 people who die of flu every year. it's something that doesn't really get out in the public enough. and of course flu changes every year. every year the cdc decides which
4:45 pm
of the three strains need to go into it. so we have to adapt the flu shot every year. and depending on those strains, it can be a little stronger or less. when it comes is also a function of the actual nature of the flu. it's not the same flu every year. >> are you expecting that you will have enough of the vaccine? in past seasons a lot of people were worried that, in fact, doctors and drugstores, they didn't actually have enough of the product. >> well, we are still able to supply the market, so we would encourage everybody to go get a flu shot. the best thing you can do is get your shot every september. >> so you do it way early, huh? let's talk business for a moment. what type of 2013 are you looking for, chris? >> 2013 is a pretty critical year for us. 2012 was the year of our patent
4:46 pm
and losing plavix. the stock is up 20%. the next chapter is really around research and development. i'm really excited about the late stage rnd pipeline we have. we're presenting that tomorrow at the conference here. we've got a good mix from vaccine to consumer to animal health and human health. so i think sanofi has become an exciting story now. >> how are you expecting to allocate capital then in terms of rnd? >> well, you know, we've tried to devise a different model. there has been an issue of productivity over the years. and my view is that we were not risk averse enough in what we put into development. you have to have a strong proof of concept and understand before you spend the hundreds of millions of dollars before you develop something. yo cannot have an innovative
4:47 pm
product without an innovating target and you can't have those unless you're involved early in science. we developed models where we are integrated into the ecosystems around the world. i was at stanford this morning where the biggest life sciences employer in boston, we have a strong hub in china and in europe. and we are really trying to develop a collaborative open innovative concept. what we put in has to have a strong proof of concept. on vaccines, on drugs that have a clear benefit over existing therapies. because the bar just gets higher and higher from reimbursement authorities every year. >> sure. and does that include transactions -- more transactions in terms of mna? you know, some of your growth has come through acquisitions. going forward in the next three years, does that growth continue to come through acquisitions or organic? >> i think it's going to be more organic.
4:48 pm
i'll tell you. in our industry, everybody's got a lot of cash. everybody is interested in growing inorganically. it's tough to find deals that have value. because sanofi now grows we have less than 3% subject to small molecule patents expiring. so we can afford to grow our business and focus on the quality of the silence. i think actually our own new products are going to be the biggest driver going forward. >> you've got a lot of cash. you going to buy bausch & lomb? >> we continue to look at everything. but i couldn't comment on a particular target. as i say, i think right now we're at a good spot. we've been able to say we can grow our business at about 5% average sales growth between 2012 and 2015. we can have a leverage p & l. so quite honestly i think sanofi has found a sweet spot in our
4:49 pm
industry where we've got these businesses that have long life assets, provide sustainable cash flows. we can now focus on research and development. we'll do some on acquisitions. we want to buy more in emerging markets, consumer health. but it's going to be that nature of activity. >> good so have you on the program again. thank you so much. >> thank you. >> swooel see you soon. chris viebacher. up next we want to get more on this flu season. robert bazell is with me now with more details. whap can you tell us? >> i can tell you it's a bad flu season. app lot of people are going to get sick. some of them are going to die. a very small percentage. and as the ceo of sanofi said, get your flu shot. what else do you want me to tell you, maria? >> well, i guess, does a flu shot really do it? i mean, a lot of people get the and then they get the flu. >> that's an important point. the flu shot is not a guarantee you won't get the flu.
4:50 pm
the flu sot is not as good as everybody would like it to be. everybody who's in medicine. it's better than nothing. it's the best we've got. and it does two things. it reduces your chances of getting the flu. and it reduces your chances of getting seriously ill if you do get the flu. and a third thing, it reduces the chance of you spreading the flu to other people around you even if you get it. the flu shot does not give you the flu. but there's a critical thing that comes up in terms of the rnd for industry. which is that whether industry is interested in making a better flu vaccine is a critical question. because a lot of doctors and research scientists think there should be a better flu vaccine. but the pricing of it would be if such a thing were possible to develop, it would probably cost the $500 rather than the $20 it costs now every year. and in that price range it gives them a consistent profit. so the they don't have a lot of motivation to make something better.
4:51 pm
>> makes sense. robert, thank you so much. appreciate it. what you need to know for tomorrow morning's markets after the break. we're going to get you set up for the opening bell. back in a moment. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else.
4:52 pm
tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5411. nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office.
4:53 pm
4:54 pm
welcome back. it's all about earning season, kicking off tomorrow. we have 30 seconds on the clock for each of our next guests. joining me right now is mbane faber to. good to see you. >> good to be here. >> 30 seconds on the clock. what do you want to look at tomorrow for this market? >> we're paying particular interest to financials right now, as we go into earnings. we have a heavy overweight right now, main lie combination with positive momentum and trends and historically low valuations. and part of a larger valuation, we're very positive on foreign stocks, in familiar european equities. we think they may be at a secular low. and rounding it out with real as sects such a u.s. and foreign reads. the only area we're tactically underweight right now is commodities, with the except of base metals, which expect to do
4:55 pm
better. >> peter, from chase investment council with me, as well. peter, what are you looking at right now? 30 seconds on the clock. >> hi, maria. how are you? >> earnings seasons starts tomorrow. tonight, paul jacobs, ceo of qualcomm is going to talk at the consumer electronics show in las vegas. we're going to be paying special attention to what he says about chip sales going forward, as well as to, what he might say about new products coming out from qualcomm that the apples and the other device makers will use. >> all right, and we'll be watching, as well, because he's on our show tomorrow, also talking about technology and what's ahead. gentlemen, thank you very much. we'll be watching tomorrow and we'll see you then. what this earnings season, meanwhile, will say about the entire economy is next. stay with us. ♪
4:56 pm
[ male announcer ] how do you make 70,000 trades a second... ♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪
4:57 pm
into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it. office superstore ink retailer in america. now get $6 back in staples rewards for every ink cartridge you recycle when you spend $50 on hp ink. staples. that was easy. when you spend $50 on hp ink. you know it even after all these years. but your erectile dysfunction - you know,that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache.
4:58 pm
to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. and finally today, my observation on the upcoming earnings reporting season, which will likely take the drivers eat in influencing stocks over the near term, instead of washington infighting.
4:59 pm
alcoa kicks things off, so, we will get a good window into how business performed in the last three months. its eceo will be with me on the program tomorrow. then, we're off to the races with a flurry of reporting over the next several weeks. my observation is cautionary. we need to keep expectations in check. the market moves simply on relief that we averted the worst when it came to the fiscal cliff. the fourth quarter is generally a good quarter relatively speaking, with holiday spending driving results. but the fundamentals remain questionable. and are perhaps more fragile than we have seen in decades. virtual little every ceo i speak with tells me the same thing. plenty of uncertainty is still there. that will keep them in check in terms of spending. we're about to see a big fight in washington over raising the debt ceiling. there are new questions about taxes going even higher. the regulatory environment is more honerous today than it has been in decades. at the end of 2012, s andp

tv
Closing Bell With Maria Bartiromo
CNBC January 7, 2013 4:00pm-5:00pm EST

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

TOPIC FREQUENCY U.s. 19, China 17, Us 15, United States 8, S&p 7, Washington 6, Sanofi 6, Pagani 4, Alcoa 4, Europe 4, Robert Frank 3, Garth 3, Turkey 3, Russia 3, Israel 2, Brazil 2, Qualcomm 2, America 2, T. Rowe 2, Charles Schwab 2
Network CNBC
Duration 01:00:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Virtual Ch. 58 (CNBC)
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 528
Pixel height 480
Sponsor Internet Archive
Audio/Visual sound, color


disc Borrow a DVD of this show
info Stream Only
Uploaded by
TV Archive
on 1/7/2013
Views
98